More evidence of the squeeze on household budgets has emerged after the owner of Primark revealed a "noticeable" slowdown in UK consumer demand.

Associated British Foods said the discount fashion chain's half-year sales rose 3% on a like-for-like basis - half the level achieved during its previous financial year.

AB Foods said while Primark traded well ahead of Christmas despite the snow chaos, the mood had changed among UK shoppers since the start of the year. It is also battling against an ongoing squeeze on profit margins since the new year VAT rise and impact of soaring global cotton prices.